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Monday, 25 April 2016

MARKET TUMBLING.DOWN BEFORE EXPIRY

BUY MCX ABOVE 890 TGT 900/925 SL 875

The BSE Sensex ended with a
loss of 159 points at 25,679. The BSE Sensex opened at 25,891 touched an
intra-day high of 25,891.03 and low of 25,586. Just when you thought the market
was gaining pace and might rise further, it lost momentum as investors turned
cautious due to major actions in global markets. A
big positive for Maruti would be strong fourth quarter numbers with margins of
over 15 percent. Midcap IT companies do not offer much at this point with
expectations of a good monsoon, fast-moving goods companies (FMCG) like Bajaj
Corp and Maruti will benefit. UltraTech Cement's fourth quarter earnings beat
analysts' expectations on all counts Monday with standalone profit rising 10.9
percent year-on-year to Rs 681.4 crore, helped by lower tax & finance cost
and better operational performance. Just when you thought the market was gaining pace
and might rise further, it lost momentum as investors turned cautious due to
major actions in global markets. Wednesday and that of Bank of Japan, which is
scheduled to come out with money policy statement on Thursday. Among local
factors, the second half of the Budget session that started today, also
influenced investor sentiment. Most market experts remained hopeful. Dalal
Street has reversed its lower top-lower bottom pattern to start making higher
tops and higher bottoms. If this pattern is to continue, the Nifty50 should
find support somewhere between 7,500 and 7,550 levels. That is a good 3-3.5 per
cent correction from the current level, which should be very healthy because it
would take away the excesses that have got built over the past three weeks.

Bharti Airtel, TCS, Adani
Ports, Bajaj Auto and Infosys were top gainers while Reliance, Maruti,
Hindalco, NTPC and ONGC were losers in the Sensex.